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The Clarion-Ledger Editorial, 12/19/8

A survey by the AARP shows overwhelming support for a law to create a consumer advocacy office to represent Mississippians when utility companies ask for raise hikes.

Members of the state Public Service Commission seem agreeable to the idea. Commissioner Brandon Presley said it would keep consumers' voices where they can be heard.

Commission Chairman Leonard Bentz pointed out that more funding would be needed to hire someone with legal and accounting experience for such a post.

He estimated a salary higher than the $78,000 commissioners earn. AARP said a 50-cent hike on ratepayers' monthly bills could generate money for the office.

Posted December 19, 2008 - 8:56 am
6 Comments:

This was a good point in the editorial.  It seems we have, in fact, too MUCH consumer protection.  We’ve got trial lawyers propping up the AG and PSC trying to invent stuff to come up with on utilities.  They are all by their own admissions not technically competent to do it themselves.

The last thing we need is an unnecessary higher tax (which is what AARP is talking about) to fund some politically charged eager beaver to shakedown business and make our climate even less friendly than it already is.  We have the AG, PSC, DAs and the State Auditor all with some jurisdiction over fraud, overcharging, misuse of funds and other criminal behavior.  That seems to be quite enough.

Posted by Alan on 12-19-2008 at 10:53 AM [link]

If I understand it correctly, it’s asking to tax the consumer to fund a person(s) to do the job that the PSC has been supposed to be doing, but label it so that it’s more consumer-friendly sounding and have to justify itself by constantly pursuing “problems” in the name of the consumer.

I believe, in fact, we need a consumer advocacy to protect us from ourselves electing those that dream up new ways to justify their existence within the ever-growing governmental entity.

Posted by JDBerry on 12-19-2008 at 11:14 AM [link]

Next, they’ll want to make this consumer protection czar independent of the PSC. Then he can have accountants, lawyers, and investigators, too. Maybe he’ll set up an advisory board made up of the Public Service Commissioners, the Attorney General, and more lawyers and accountants, just to bring it full circle.

Posted by josepacheco on 12-19-2008 at 03:04 PM [link]

I beg to differ.
You have no idea of the complexity of the utility tariff calculations that make up the utility rates charged to consumers.  There are potentially hundreds of individual rate elements, allowable overhead costs, rates of return, taxes, fees, price supports, and a dozen other things that compose your utility rates.  The PSC has a professional staff whose job it is to evaluate all of these elements to advise the commission, and to insure business brought before the commission complies with its existing policies and regulations.  The Utility companies have extensive legal and regulatory divisions whose sole responsibility is to formulate costs, and to insure compliance with state law, local ordinances, county ordinances, municipalities, 911 offices, FCC rulings, just to name a few.  In order to receive PSC approval for a utility to modify its rate structure, it would have to be able to justify that particular rate element to the commission.  If they cannot justify that rate to the satisfaction of the commission, they will not be approved

We already have a forum for consumers to get relief or assistance when dealing with a utility complaint.  If you have a grievance, you can call your commissioner, file a complaint, and be assigned to an investigator who will do everything in his or her power to satisfy you the voter.  These investigators give consumers a voice and some clout when dealing with utility companies.

What if you just think that Utility XXX is charging too much and that the new international widgetary recovery charge of $ 1.00 on your bill is way out of line. 

Call down to the PSC and file a formal complaint.  After your case is investigated, a preliminary hearing will be conducted to determine the merits of your case.  After that, you will be assigned a date on the commissions Docket.  Now you have a scheduled hearing.  Hearing day rolls around and you are ready to make your case before the PSC and its staff. 

You say that you think the international wigetary recovery fee charged by Utility XXX is a moral outrage and a crime against your God given rights.  I think it is too high and I don’t want to pay it.

Utility XXX would then call to the stand a brigade of experts, accountants, lawyers, advisors, and a whole host of other people flown in on the corporate jet from who knows where to show to you and to the commission why the international wigetary recovery fee is essential to the survival of the company and without that extra dollar, the company will no longer be able to provide service to anyone at any price, anywhere. 

Winner: Utility XXX.

Say you have unlimited resources and hire your own counsel, tariff experts, regulatory experts, and a kitchen sinkologist to protest the international widgetary recovery fee.  Weeks, months, and thousands of dollars later you will get your day in the PSC hearing room to argue the merits of your case. 
After your brilliant presentation, you win your case and the PSC strikes down the international widgetary recovery fee as improper.  Good for you.  You do not have to pay the widgetary recovery fee.

Next month there is a tariff notification that utility XXX is asking for an increase of 1.00 in the posthole repository depot fee that will help them provide more motorcycle screen doors to all of the customers in the great state of Mississippi.

Return to step one and repeat.

A consumer advocate position, like in Tennessee and surrounding states, gives rate payers an independent voice in the the discussion.  These consumer advocates are responsible for making sure that the rights of the consumers are represented in these decisions and I think they would be a welcome addition to our regulatory process.  I do think that this office could be funded through some process other than tacking on .50 cents to everything.

Posted by daddymax on 12-19-2008 at 07:16 PM [link]

The last thing we need,another government groupe to protect us.

Posted by theoldman on 12-19-2008 at 07:44 PM [link]

I am not saying it is unfair, but do you want to let the other team play every game at home and also hire the ref’s?

Posted by daddymax on 12-19-2008 at 08:01 PM [link]
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